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Learn the smartest ways to finance skid steers, backhoes, and big rigs. Discover tips on choosing the right loan, preparing for approval, and avoiding common mistakes.
Skid steers, backhoes, and big rigs are some of the most critical machines in the construction and hauling industries. Whether you're clearing land, moving debris, digging foundations, or transporting materials, having access to this equipment is key to keeping your operation moving.
But acquiring this kind of machinery can cost anywhere from $30,000 to $200,000 or more—an expense that can strain your business’s working capital. That’s where smart financing comes in. Knowing how to secure the right type of loan, with the best terms and minimal hassle, can make the difference between growth and gridlock.
In this post, we’ll cover the best practices for financing these heavy machines, from lender expectations to credit tips and beyond.
For many small and mid-sized businesses, equipment isn’t just a tool—it’s a revenue generator. A skid steer or backhoe can be used across multiple job types. A reliable big rig can add new hauling capabilities or logistics services to your business. The right financing strategy helps you get the equipment you need now—without compromising other parts of your business.
According to ForConstructionPros, equipment ownership improves bidding confidence and project planning, especially when you’re not relying on rentals or subcontracted machines.
Whether you’re replacing aging gear or expanding your fleet, the financing process should support—not hinder—your operational goals.
Before you apply, understand the type and specs of the equipment you want to finance:
Knowing the machine’s intended use, expected lifespan, and brand reputation helps you select equipment that lenders are more willing to finance.
There are several financing options available depending on your business model and cash flow.
1. Equipment Loans
These are fixed-term loans where the equipment serves as collateral. You'll typically need a down payment of 10%–20%, and repayment terms can range from 2 to 7 years.
Best for: Businesses that want to build equity and keep the machine long-term.
2. Equipment Leasing
Leasing offers lower monthly payments and the option to return, renew, or buy the equipment at lease-end. This is helpful for equipment with fast depreciation or infrequent use.
Best for: Contractors who want flexibility, lower upfront costs, or frequently update their fleet.
3. Business Line of Credit
A revolving line of credit offers more flexibility than a loan. You draw only what you need and pay interest on what you use. It’s great for ongoing purchases, smaller upgrades, or emergencies.
Best for: Seasonal needs or supplementing larger equipment purchases.
Lenders evaluate a few key areas when considering your application:
Credit Score
A personal or business score of 600+ is often required. Higher scores lead to better terms, but many lenders work with borrowers in the low 600s if other parts of the business profile are strong.
Time in Business
Most lenders prefer at least 6–12 months of operating history, but some lease providers and alternative lenders will work with newer businesses.
Revenue and Cash Flow
Expect to show at least 3–6 months of bank statements or tax returns. You should demonstrate the ability to comfortably cover loan payments based on your existing cash flow.
Equipment Details
You’ll need a formal quote or invoice that includes the model, price, and year. Used equipment can be financed too, though restrictions may apply based on age and condition.
For guidance on documentation and readiness, check out the SBA’s loan preparation tips.
Not all lenders are created equal. Make sure to compare these factors:
Use tools like Bankrate’s loan calculator to compare total cost of ownership over the life of the loan.
1. Overextending Your Budget
It’s tempting to go for the bigger machine, but make sure you’re not signing up for payments that could stretch your business thin during a slow season.
2. Ignoring Used Equipment
Many high-quality skid steers and backhoes are available, and lenders often finance equipment up to 8–10 years old. Just make sure it comes with service records.
3. Rushing the Process
Take the time to gather quotes, compare lenders, and understand your loan documents. A rushed decision can lead to higher costs and stricter terms.
4. Forgetting to Insure the Equipment
Most lenders require insurance. Make sure your policy is in place before delivery to avoid delays in funding or potential penalties.
5. Not Asking About Flexible Terms
Some lenders offer seasonal payment structures or deferred start dates, which can help match payments to cash flow. Don’t be afraid to ask.
Maria runs a small excavation and hauling company in Northern California. When demand surged, she needed a second skid steer and a used big rig to handle new contracts. Instead of dipping into savings, she used a line of credit for a down payment and financed the balance over 5 years through a lender specializing in construction equipment. The additional capacity helped her win larger jobs—and pay off the loan two years early.
Her takeaway? Choose flexible terms, understand your numbers, and align the equipment’s value to real business outcomes.
Your equipment is more than a line item—it’s the backbone of your business. Smart financing helps you access what you need today, without compromising your tomorrow.
If you're ready to explore your options, connect with National Legacy Capital Group. Their team helps small and mid-sized businesses secure fast, affordable financing for equipment like skid steers, backhoes, and big rigs—so you can stay productive, competitive, and profitable.
Can I finance both new and used equipment?
Yes. Most lenders finance both, though used machines may have age or condition limits. Be sure to get documentation from the seller.
How quickly can I get approved?
Approvals often happen in 24–48 hours, with funding shortly after. Some lenders offer same-day turnaround.
Is a lease or loan better for my business?
Leases offer flexibility and lower payments. Loans are better for long-term use and ownership. The right option depends on your cash flow and how long you plan to keep the machine.
Can I bundle multiple machines in one loan?
Yes. Many lenders allow you to finance several pieces of equipment under a single agreement to simplify payments and approvals.
